SEC regulating crypto could be a nightmare, Mark Cuban

How digital tokens should be regulated has been a bit of concern for crypto enthusiasts, where will regulations fit in a few years from now is a major concern, a lot of institutions have to distance themselves from the crypto space due to uncertainties from upcoming regulatory policies which are not yet clarified for investments, for certain reasons the Security Exchange Commission (SEC) are yet to make explicit clarification on what seems to be termed security and none secure digital token in crypto-verse, this has also slowed down adoption rate in the blockchain industry, we do clamor for a well-regulated crypto-friendly environment where the innovative expert will make good use of the technology and boost finance service, what is lacking on the field are technical know-how expert that will introduce viable regulatory terms for crypto tokens to thrive SEC need to see a good reason for digital assets to stay and not consider it as a rivalry against fiat currency.

source

The Securities and Exchange Commission regulating how cryptocurrencies are registered, according to Mark Cuban, will be nothing short of a “nightmare.
source

The recent coinbase insider exchange leak of tokens before listing announcement has further made the SEC list nine other tokens as unregistered securities.

According to SEC, a token is considered a security if meets this listed demand.

• There must be an existing enterprise.

• It must require an investment of money.

• There must be an expectation of profit for investors.

If these are criteria for tokens to be registered as security it means most token out there has passed the test.

A token is considered not a security if it does not reach these demands set out by the SEC.

• If a listed token meets the need of users rather than it's set out the value.

I guess the general public will need more clarity as to what most of these criteria are, its a bit mixed up, as most digital tokens require an investment of money, to regulate digital tokens more expertise will be required from digital financial experts also SEC making rules and guidelines on digital tokens behind close doors have been discouraging leading to the general public erring on some regulation set out policies there should be more transparency with a public notice on general workable regulations governing digital assets, with more regulation rules expected in the future we don't know what might come up next one way or another SEC rules could play out big time on crypto, for now, we expect things to go on smoothly for crypto adoption to continue.

posted